Revisiting your financial goals for 2013

POSTED: 12th June 2013
IN: Guides

Have you achieved what you expected so far? As we enter the second half of 2013, it makes sense to review your financial goals for the year to see what you have achieved so far and review your financial goals for the rest of the year.

undefinedReview the first six months

Start of by reminding yourself what targets you set yourself in January and then assess where you are now to find out if you have achieved your aims.

Look at your year-to-date figures so far and see if you are making the profit you expected.

Ask yourself the following questions. Have you reached your sales targets? Is your cash flow where you expected it to be? Are your costs under control or are you spending more than anticipated?

Analyse and understand how you put together your targets at the start of the year and assess if any of the assumptions underpinning the targets have changed.

Finding the answers to these questions will allow your business to identify areas that need reviewing or a change of strategy.

Business environment

Has anything changed that will impact on sales?

For instance, if you run a business that sees demand rise when the weather improves or deteriorates, has the weather had an effect on your business?

If demand has fallen due to poor weather conditions, then your sales will fall too. To help you reach your financial goals you may need to cut back on costs to a more appropriate level that matches the falling sales of the business.

If conditions are favourable and leading to a rise in sales, you may need to adjust your financial goals to reflect the improved financial conditions and consider taking on more staff, perhaps on a temporary basis.

Targets met?

If you have achieved your targets then try and learn from it. Analyse your financial data to learn from this and see how you achieved your goals. Define what factors helped you reach your goals in the first half of the year.

By learning from successful strategies that enabled you to be successful you can learn how to replicate these for further success.

Targets not met?

Equally, if you have not met your financial goals so far then you need to find out why.

Were the original targets unrealistic? Delve into the budget, sales targets and cashflow forecasts that you set out previously and pinpoint what figures were unrealistic and review them to see how they can be amended to ensure you get to where you need to be.

Identify which areas of the business underperformed and why? Were there external factors causing this or are there areas of the business that you can address and make improvements too.

The next step

Once you have reviewed your financial goals you can then work out a plan to make changes in areas of the business so that you reach your financial goals for 2013.

This is also the time to decide if you need to amend any of your financial targets up or down.

This could involve hiring staff in specific areas, investing in equipment or raising your marketing profile.

By conducting a full review of your financial goals for the year at the halfway stage you will understand why any changes are needed and your firm will be in the best possible position to reach your aims for the rest of the year.

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